World food prices hit 3-year high in July as weather and war weigh, FAO says
The FAO said cereal, sugar and vegetable oil prices led the rise as war, heatwaves and El Niño tightened global supplies.
- United Nations Food and Agriculture Organization chief economist Maximo Torero warned that wars in Iran and Ukraine, coupled with El Niño, are creating a 'perfect storm' driving global food prices higher by year-end.
- Conflict-Driven damage to Ukraine's infrastructure and tensions in the Strait of Hormuz are disrupting energy markets, affecting vital agricultural inputs like diesel and natural gas used for fertilizers, Torero said.
- Australia reported winter crop production down 21% due to input costs, while delayed monsoons in India this month threaten rice yields; the American Farm Bureau Federation projects U.S. farmers could lose $32 billion in 2027.
- "The transmission from the commodity to the final food price is around three to six months," Torero said, meaning significant increases will reach consumers by year-end and accelerate next year.
- As global markets face these combined pressures, the resulting food insecurity could impact tens of millions. While commodity prices have been relatively benign recently, these compounding factors suggest the 2022 inflation surge may be followed by new price volatility.
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63 Articles
Cereals, sugar and vegetable oils lead the rise
Global food prices rise to highest level in more than three years
Rome: Global food prices rose in July to their highest level in more than three years, driven by increases in cereal, sugar and vegetable oil prices amid concerns over global grain supplies and the impact of weather conditions on agricultural production.Data from the United Nations Food and Agriculture Organisation (FAO) showed that the Food Price Index rose by 0.6 percent from June to 131.1 points, supported by higher prices for cereals, sugar …
Prices for sugar, vegetable oil and grains reach the highest level since January 2023.
Global food prices edge up in July amid heat waves, regional conflicts: FAO
Global food commodity prices rose slightly in July, driven by higher prices for cereals, sugar and vegetable oils, while lower meat and dairy prices partly offset the increase, according to a report released Friday by the Food and Agriculture Organization (FAO) of the United Nations.
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